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Investors with a short-term view can sell the stock of L&T Finance Holdings at current levels. The stock has been in an intermediate-term downtrend since encountering a key resistance at ₹185 in August 2018. Following a corrective up-move in March, the stock tested a key resistance at ₹155. Subsequently, the stock changed direction and has been in a downtrend.
While trending down the stock breached a key support at ₹145 as well as the 200-day moving average earlier this week. On Thursday, the stock had slumped 1.6 per cent breaching its 21-DMA. The stock has tumbled 6 per cent this week. With this decline, the daily relative strength index has entered the bearish zone from the neutral region. The weekly RSI is charting downwards in the neutral region. Moreover, the daily price rate of change indicators feature in the negative territory implying selling interest.
The stock hovers well below the 50- and 200-DMAs. The short-term outlook is bearish for the stock. It can continue to decline and reach the price targets of ₹131.5 and ₹129 in the ensuing trading sessions. Traders can sell the stock with a stop-loss at ₹140.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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